The open source model for covering bitcoin-China hysteria

The Wall Street Journal is reporting that BTC China has begun to disallow deposits from another Chinese bank, and some investors have again begun wringing their hands over what this will do to the currency’s value against fiat money.

We get one of these stories every week now, and anyone following along knows the drill. So, we thought it might be more useful if we created an open source model for reporting on these kinds of stories.

Think of the text below as a big game of Mad Libs — just fill in the brackets with new, relevant information. We have updated plugged in details from the latest story to show how this works:

The price of one bitcoin fell to [$420] this morning amid growing concern over developments in China.

BTC China, a major Bitcoin exchange, just announced that it will no longer take deposits in yuan from [China Merchants Bank Co.], delivering a major blow to investors’ confidence in the digital currency.

Representatives from BTC China sought to reassure customers by saying this move was simply to the secure client funds and ensure stable operations.

BTC China is the biggest exchange, currently handling [75%] of all yuan-bitcoin exchanges.

BTC China CEO Bobby Lee. Photo: BTC China

This is yet one more signal that the Chinese government is beginning to crack down on the trading of Bitcoin and other such cryptocurrencies, though no official pronouncement to that effect has yet been made. Instead, the eternal hot-cold attitude toward Bitcoin among Chinese officials has sent a chill throughout global Bitcoin markets.

At the end of 2013, the first wave of panic that China might outright “ban” Bitcoin swept through the digital currency economy, almost halving the dollar value of bitcoins overnight.

Still, not all Bitcoin users are down. “This is actually good news for Bitcoin,” said cryptocurrency trader/enthusiast/evangelist/miner Adam Smith, an American expat and self-described “lifestyle designer” living in China.

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